Abstract: This study examines the relationship between middle-class Indian investors' financial literacy and portfolio diversification.Assessing these investors' degree of financial literacy, determining the degree of diversification in their portfolios, and figuring out how financial literacy and investment choices are related are the goals.  One hundred middle-class investors from various Indian cities participated in the poll, which was conducted using quantitative research.  The results show that financial literacy is moderate, with an average score of 63.45 and a moderate level of portfolio diversification of 3.42. A moderately favourable association between the two variables is indicated by the estimated correlation between financial literacy and portfolio diversification (r = 0.45), indicating that investors with high levels of financial literacy diversify their holdings effectively. Evidently, the results produced as a result of the regression analysis show that financial literacy explains 20% of the variance with regard to portfolio diversification proving once more its role in investment planning. Concerning the findings, the present paper depicts a need for more focus on improving Finance literacy with an aim of increasing portfolio diversification and thereby the overall financial quality of the middle-class investors in India.

Keywords:Financial Literacy, Portfolio Diversification, Evidence, India’s, Middle-Class Investors.